Covenant Closes Record $1.1B Value-Add Sunbelt Multifamily

Covenant Capital Group has held the final close of Covenant Apartment Fund XII, L.P., with $860.35 million in capital commitments—the largest fundraise in the Nashville-based firm’s 25-year history. The firm also raised a $269.73 million sidecar, the Covenant Affordable Housing Fund, bringing total capital for the strategy to more than $1.1 billion. Fund XII closed with strong backing from both existing and new institutional partners. 

Fund XII is designed to target underperforming multifamily properties with clear value‑add potential, focusing on assets that can benefit from renovations, operational improvements, and disciplined asset management. 

“We are looking forward to implementing our time-tested investment strategy of making value-add investments to preserve apartment communities across the rapidly growing Sunbelt,” said Govan White, president and co-founder of Covenant Capital Group. “The U.S. continues to have a shortage of middle-market apartments and Covenant Capital Group intends to provide an attractive solution for renters along with top tier returns for investors.” 

Nashville-based Covenant oversees more than $2.4 billion in assets under management across multiple markets, representing over 22,000 multifamily units, and has acquired more than $5 billion in multifamily assets nationwide since inception.  

To date, Fund XII has committed $240 million to 14 apartment communities across the Sunbelt, while the Affordable Housing Fund has committed $94 million across 40 projects throughout the U.S.